Foreclosure statistics
Hi,
I heard some astounding statistics today regarding foreclosures. Stats for the 4th quarter of 2008 were released earlier this month. During the 4th quarter more than 11% of all loans were in default. 3.3% were in foreclosure. If you truly want to get a measure of how much of an effect the sub prime market has had on the economy you only have to look at the tremendous disparity between the default rates of prime vs. sub-prime. 1.8% of prime loans were in foreclosure with an addition 5.06 % in default (at least 30 days late). The sub-prime loans saw 13.71 in foreclosure with an additional 21.88 % in default. That means, in total, more than one third of all sub-prime loans were in some stage of default in the 4th quarter.
This is one reason I decided to get my CDPE (Certified Distressed Property Expert) designation. If I can help even one person avoid foreclosure, whether by short sale or other counseling, then it's worth it. Foreclosure wreaks havoc not only on the individual or family being foreclosed on, but on the neighborhood and the economy when there are so many. It will take a long time to clear out all of these problems. The good news is that interest rates are the lowest in over 50 years and prices are way down from their peaks. It's a good time to buy, especially for first time buyers. Just use prudence and smart practices to avoid the pitfalls that so many others have endured.
Adam Tarr, Associate Broker
ABR, CDPE, RSPS, ePro, CNE
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
Scottsdale, AZ
480-236-7374
adam@WeAreAZRealEstate.com